Exco Technologies Ltd reports 42.7% EBITDA growth and 0.80 pp EBITDA Margin growth from 14.6% to 15.4%
02.12.2015 • About Exco Technologies Ltd (
$XTC) • By InTwits
Exco Technologies Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Exco Technologies Ltd is a fast growth stock: FY2015 revenue growth was 35.3%, 5 year revenue CAGR was 24.7% at FY2015 ROIC 24.2%
- Exco Technologies Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 20.0 in FY2015, 24.7 in FY2014, 21.6 in FY2013, 7.7 in FY2012, 8.9 in FY2011
- The company has highly profitable business model: ROIC is at 24.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Exco Technologies Ltd ($XTC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 202.6 | 242.5 | 244.6 | 368.3 | 498.3 | 35.3% |
| Gross Profit | 52.4 | 69.9 | 71.1 | 89.3 | 118.8 | 33.0% |
| SG&A | 24.0 | 27.2 | 28.0 | 35.4 | 41.6 | 17.5% |
| EBITDA | 28.6 | 42.6 | 43.0 | 53.9 | 77.0 | 42.7% |
| Net Income | 13.3 | 24.4 | 23.6 | 30.7 | 40.8 | 33.0% |
Balance Sheet
|
|---|
| Cash | 15.4 | 31.2 | 26.1 | 31.2 | 35.0 | 12.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 21.9 | 10.1 | -53.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 1.5 | 0.4 | -72.8% |
Cash flow
|
|---|
| Capex | 8.9 | 7.7 | 21.6 | 24.7 | 20.0 | -19.2% |
Ratios
|
|---|
| Revenue growth | 22.4% | 19.7% | 0.9% | 50.5% | 35.3% | |
| EBITDA growth | 27.2% | 49.2% | 0.8% | 25.6% | 42.7% | |
| Gross Margin | 25.8% | 28.8% | 29.1% | 24.3% | 23.8% | -0.4% |
| EBITDA Margin | 14.1% | 17.6% | 17.6% | 14.6% | 15.4% | 0.8% |
| Net Income Margin | 6.5% | 10.1% | 9.7% | 8.3% | 8.2% | -0.1% |
| SG&A, % of revenue | 11.8% | 11.2% | 11.5% | 9.6% | 8.4% | -1.3% |
| CAPEX, % of revenue | 4.4% | 3.2% | 8.8% | 6.7% | 4.0% | -2.7% |
| ROIC | 14.0% | 23.2% | 21.1% | 20.4% | 24.2% | 3.8% |
| ROE | 10.6% | 17.8% | 15.4% | 16.7% | 18.2% | 1.5% |
| Net Debt/EBITDA | -0.5x | -0.7x | -0.6x | -0.1x | -0.3x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 35.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.80 pp from 14.6% to 15.4% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 9.6% to 8.4% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.0% in FY2015. The company's CAPEX/Revenue increased slightly on 0.82 pp from 3.2% in FY2012 to 4.0% in FY2015. For the last three years the average CAPEX/Revenue was 6.5%.
Return on investment
The company operates at high and attractive ROIC (24.15%) while ROE is a bit lower (18.21%). ROIC increased on 3.8 pp from 20.4% to 24.2% in FY2015. ROE increased slightly on 1.5 pp from 16.7% to 18.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 0.2x from -0.1x to -0.3x in FY2015. Debt dropped on 55.1% in FY2015 while cash surged on 12.0% in FY2015.
Appendix 1: Peers in Industrial
Below you can find Exco Technologies Ltd benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| WSP Global Inc ($WSP) | 12.3% | 92.9% | 60.3% | 44.0% | |
| |
|---|
| Median (92 companies) | 12.4% | 10.4% | 5.3% | 9.1% | 23.9% |
|---|
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 26.5% |
|---|
| Exco Technologies Ltd ($XTC) | 25.8% | 28.8% | 29.1% | 24.3% | 23.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 10.8% |
|---|
| Exco Technologies Ltd ($XTC) | 14.1% | 17.6% | 17.6% | 14.6% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 2.6% |
|---|
| Exco Technologies Ltd ($XTC) | 4.4% | 3.2% | 8.8% | 6.7% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 8.5% |
|---|
| Exco Technologies Ltd ($XTC) | 14.0% | 23.2% | 21.1% | 20.4% | 24.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | -0.2x |
|---|
| Exco Technologies Ltd ($XTC) | -0.5x | -0.7x | -0.6x | -0.1x | -0.3x |
